Market News

– Today and after the full snapback of US sanctions on Iran along with adding almost everything to OFAC’s SDN list, 10% of the newly sanctioned Qaed Bassir Petrochemical Co. (listed under BSRZ ticker) offered publically on Iran Fara Bourse via book building method with a price ranging from IRR 8,000-8,500 per share. The company produces ABS with a capacity of 30K tonnes per annum. BSRZ earnings jump for 128% on the H1 contrary to the previous year.

– In a report presented to the president Rouhani, the CEO of Iran securities and exchange organization announced that during the terms of 11th and 12th administration, the ratio of the total market cap to GDP of Iran has raised from 20% to 51.1%. Pointing out that the number of listed companies on both TSE and IFB reached 594, he revealed that at least 10 more companies will be offered to the public by the year-end. Elsewhere in his report, Shapour Mohammadi told the press that the size of Iran debt market got bigger by nine times (9x) contrary to the year 2012/13. At last, he announced the total figure of foreign investment in Iran capital market which stamped a rise of 73% from previous year until today.

– An amendment has been made on the third offering of Iran crude oil on Iran Energy Exchange. The base price reduced to $71.59 per barrel according to the latest changes of global crude price. Moreover, the settlement period of currency instalments extended by 10 days to 60 now. This offering will happen on November 11, 2018.

In the Market

Equities gained slightly on a subdued session, as investors remained cautious ahead of the U.S. congressional midterms elections along with domestic political news which will be out during the weekend. TEDPIX (+0.51%) hiked largely due to a better performance of its Banking (+2.53%) tickers while IFEX (+0.73%) was thinner with the focus being on the Metals (+0.22%) components.

Meanwhile, the sanctions sensitive sectors of Chemicals (-0.53%) and Pharmaceuticals (-0.45%) were traded with more than necessary pessimism. Just the other night, United States imposed broadest sanctions ever, that is what they are calling this round, on almost all Iranian banks, oil refineries and other metal producers. Although the news on the exemption of 8-9 countries from oil purchases sanctions pressured the global crude price, however, the easement of selling oil for a while lifted this heavyweight from Oil Products (+1.17%) tickers.

In general, it shall be waited until after the weekend to see which side the political climate will sway to have a better look on the future of capital market trend.

DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.